Q. What do you understand by Goal Congruence? What are the informal factors that influence goal congruence?

Ans: Every individual working in an organization has got his own motive to do the work. Individuals act in their own interest, based on their own motivations. And it is always not necessarily consistent with the Cos goal. The central purpose o a management control system, is to ensure, as ar as possible, a high level o what is called !"oal Congruence#. In a goal congruent process, the actions people are led to take in accordance with their perceived sel $interest are also in the best interest o the organization. i.e. "oal congruence ensures that the action o manager taken in their best interest is also in the best interest o the organization. Goal congruence is This term is used when the same goals are shared by top managers and their subordinates. The system can achieve its goal more e ectively and per orm better when organizational goals can be well aligned with the personal and group goals o subordinates and superiors. The goals o the company should be the same as the goals o the individual business segments. Corporate goals can be communicated by

Budgets, Organization Charts, and Job Descriptions.

Individuals work in di erent hierarchies and handle di erent responsibilities % may have di erent goals. &ut they must come together as ar as Companys "oal is concerned 'their actions must speak the Companys language.(

Example 1 The )* manager has devised a )* training program to enhance the skills o its sales personnel,
with an ob+ective to enhance their productivity. &ut i company is in strategic need o attaining a certain sales volume in a given ,uarter, it cannot do so on account o non availability o personnel.

Example ! The marketing department has planned an impressive advertising campaign, which promises
good returns, &ut say due to cash crunch Companys current inancial position may not let to lose the strings

Example "

-roduction .anager may get a good applause or reducing cycle time/ &ut at what cost0 &uilding up the high inventory i.e. higher investment in current assets. 1hile doing so he +ust overlooked the inancial interest o the company. 2 A ter completing the given activity in more e icient manner the concerned manager scores the point3s on his score card. 2 1hether his actions are leading to scoring o points on the organizations score card too0 i it is so then only one can say the organization is marching towards a common goal. #actors that influence Goal Congruence: Are ! types as External and $nternal factors.

External factors 4 set o attitudes o the society, work ethics o the society Internal factors 4 '5actors within the organization( 2 Culture$Common belie s, shared values, norms o behavior % assumptions 2 Implicitly accepted and e6plicitly built into. 2 .gt. 7tyle 4 In ormal35ormal 2 The Communication Channels 2 -erception and Communication 4 e.g. &udget 'meaning( strict pro it.